Where can I find the 'Compensation Policy' details for a Focus Cfo franchise?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
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ATTACHMENT B TO THE FRANCHISE AGREEMENT
COMPENSATION POLICY (EFFECTIVE AS OF January 1, 2025)
Focus CFO has the right to modify the provisions of this Compensation Policy as set forth in your Franchise Agreement.
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- Area Presidents:
- A. Area Presidents are paid a base rate. The base rate is determined as follows:
- i. For clients in the Area President's Book of Business with a signed PSA dated in months one through thirteen after signing this Agreement, the Area President will receive a base rate of thirty percent (30%) of the CFO Services revenue collected by Focus CFO on said clients for the life of these accounts.
- ii. For clients in the Area President's Book of Business with a signed PSA dated in months fourteen through twenty-four after signing this Agreement, the Area President will receive a base rate of twentyfive percent (25%) of the CFO Services revenue collected by Focus CFO on said clients for the life of these accounts.
- iii. For clients in the Area President's Book of Business with a signed PSA dated after the Area President's twenty-fourth month after signing this Agreement, the Area President will receive a base rate of twenty percent (20%) of the CFO Services revenue collected by Focus CFO on said clients. The base rate on these accounts shall increase, on a territory-by-territory basis, as the calendar year-todate collections on their Book of Business for a given territory reaches the following tiers.
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- $1 $550,000 = 20%
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- $550,001 $1,100,000 = 25%
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- $1,100,001 $1,650,000 = 30%
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- Reve
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Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, the Compensation Policy is detailed in Attachment B to the Franchise Agreement. This policy outlines how Focus Cfo franchisees, specifically Area Presidents, are compensated as independent contractors.
The Compensation Policy in Attachment B, effective as of January 1, 2025, details the base rates for Area Presidents, which are determined by the date a client's PSA (Professional Services Agreement) is signed and the amount of CFO Services revenue collected by Focus CFO. The base rate ranges from 20% to 35% depending on the client's PSA date and the calendar year-to-date collections. Focus CFO retains the right to modify the Compensation Policy, but cannot adjust individual percentage rates by more than one percentage point per year without the franchisee's written consent.
Attachment B provides specific details on how the base rate is calculated for Area Presidents based on when clients sign their PSA and the revenue generated. For example, clients signed in the first 13 months yield a 30% base rate, while those signed after 24 months start at 20% but can increase based on revenue tiers. These tiers are subject to adjustments for inflation and other business factors.
Prospective franchisees should carefully review Attachment B to fully understand the compensation structure, including how revenue is calculated, the impact of borrowing CFOs from other territories, and the potential for modifications to the policy. Understanding these details is crucial for assessing the financial viability of a Focus Cfo franchise.